# What is my EBITDA?

Computes EBITDA (earnings before interest, taxes, depreciation and amortization) from net income or operating income, with EBIT and the EBITDA margin.

- Page: https://www.acalculator.org/finance/ebitda-calculator
- JSON spec: https://www.acalculator.org/finance/ebitda-calculator.json
- Version: 1889ce867e03

## Default answer

Example with the default inputs (Start from Net income, Net income $35,000.00, Interest expense $2,000.00, Income taxes $6,000.00, Depreciation $3,600.00, Amortization $0.00, Revenue $0.00): Adding back $3,600.00 of depreciation and amortization to EBIT of $43,000.00 gives EBITDA of $46,600.00.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| from | Start from | Net income (the bottom line) or operating income (EBIT). |
| ni | Net income | Profit after every expense, interest and tax. Negative for a loss. |
| int | Interest expense | Interest paid on debt, minus any interest income. |
| tax | Income taxes | Income tax expense for the period. Negative for a tax benefit. |
| ebit | Operating income (EBIT) | Gross profit minus operating expenses. |
| dep | Depreciation | The part of tangible assets’ cost charged this period. |
| amort | Amortization | The part of intangible assets’ cost charged this period. |
| rev | Revenue | Total sales for the period, for the EBITDA margin. Optional. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| ebitda | EBITDA | Earnings before interest, taxes, depreciation and amortization. |
| ebit | EBIT (operating income) | EBITDA minus depreciation and amortization. |
| addBacks | Depreciation and amortization | The non-cash charges added back. |
| margin | EBITDA margin | EBITDA ÷ revenue × 100. |

## Method

From net income: EBIT = net income + interest + taxes. From operating income: EBIT = operating income. EBITDA = EBIT + depreciation + amortization. EBITDA margin = EBITDA ÷ revenue × 100.

## Assumptions

- All amounts cover the same period.
- Interest is net interest expense, and taxes are income taxes only.
- Arithmetic is exact on the typed decimals; money shows to the cent, halves up.

## Worked examples

1. from = net, ni = $30,000.00, int = $3,000.00, tax = $5,000.00, dep = $2,500.00 gives ebitda = $40,500.00, ebit = $38,000.00. Source: OpenStax, Principles of Finance, 5.1 The Income Statement (EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/5-1-the-income-statement: 30,000 + 3,000 + 5,000 + 2,500 = 40,500.
2. from = net, ni = $35,000.00, int = $2,000.00, tax = $6,000.00, dep = $3,600.00 gives ebitda = $46,600.00. Source: OpenStax, Principles of Finance, 5.1 The Income Statement (EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/5-1-the-income-statement: 35,000 + 2,000 + 6,000 + 3,600 = 46,600.
3. from = operating, ebit = $43,000.00, dep = $3,600.00, amort = $0.00, rev = $200,000.00 gives ebitda = $46,600.00, margin = 23.3%. Source: OpenStax, Principles of Finance, 5.1 The Income Statement (EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/5-1-the-income-statement (operating income $43,000).
4. from = net, ni = -$12,000.50, int = $4,000.00, tax = -$1,500.00, dep = $9,000.00, amort = $2,500.25 gives ebitda = $1,999.75, ebit = -$9,500.50.

## FAQ

### What is EBITDA?

EBITDA means earnings before interest, taxes, depreciation and amortization. It shows what a business earns from its operations before financing costs, taxes and the non-cash charges for wearing out its assets.

### How do I calculate EBITDA?

Start with net income and add back interest, taxes, depreciation and amortization. Clear Lake Sporting Goods had net income of $35,000, interest of $2,000, taxes of $6,000 and depreciation of $3,600, so its EBITDA was $46,600.

### How do I calculate EBITDA from operating income?

Operating income (EBIT) is already before interest and taxes, so add only depreciation and amortization. $43,000 of operating income plus $3,600 of depreciation is $46,600 of EBITDA.

### What is the EBITDA margin?

The EBITDA margin is EBITDA as a percent of revenue. $46,600 of EBITDA on $200,000 of revenue is a 23.3% margin. It lets you compare businesses of different sizes.

### What is the difference between EBIT and EBITDA?

EBIT (earnings before interest and taxes) is operating income after depreciation and amortization. EBITDA adds those two charges back, so EBITDA is EBIT plus depreciation and amortization.

### Is EBITDA the same as cash flow?

No. EBITDA leaves out non-cash charges, so it is often used as a rough measure of operating cash. But it ignores changes in working capital, taxes paid and spending on new equipment. Free cash flow takes those into account.

## Sources

- OpenStax, Principles of Finance, 5.1 The Income Statement: EBITDA = net income + interest + taxes + depreciation + amortization, and the Clear Lake Sporting Goods income statement (EBITDA of $40,500 and $46,600; operating income $43,000). https://openstax.org/books/principles-finance/pages/5-1-the-income-statement (retrieved 2026-10-05)